2012 Ohio 4386
Ohio Ct. App.2012Background
- Highland Towers Akron, LLC owns a 95-unit apartment building in Akron and purchased adjacent parcel 68-21969 on June 10, 2010 for $325,000, the then-appraised value being $236,650.
- The Summit County Board of Revision increased the property's true value to $325,000, prompting Highland Towers to appeal to the Summit County Court of Common Pleas.
- The trial court reversed, holding the sale was not arm's-length and reducing the 2010 true value to $236,650.
- Appellants, the Akron City School District Board of Education, Summit County Board of Revision, and Summit County Fiscal Officer, appeal, arguing the sale was arm's-length and the Board's determination should stand.
- Witness Thomas Dillon testified Highland Towers needed the parcel to address tenant parking; other evidence suggested the sale occurred on the open market and was negotiated by voluntary parties in their own self-interest.
- The appellate court ultimately determined the trial court abused its discretion and held the sale was an arm's-length transaction, preserving the Board of Revision's $325,000 valuation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was Highland Towers' purchase an arm's-length sale? | Highland Towers: sale not arm's-length due to compelled parking need and coercive financing. | School Board: sale was arm's-length, voluntary and open market. | Sale was arm's-length; trial court abused discretion. |
Key Cases Cited
- Lakeside Ave. Ltd. Partnership v. Cuyahoga Cty. Bd. of Revision, 75 Ohio St.3d 540 (1996) (relevant to whether non-arm's-length factors exist in special circumstances)
- Cleveland Mun. School Dist. Bd. of Educ. v. Cuyahoga Cty. Bd. of Revision, 107 Ohio St.3d 250 (2005) (duress and economic coercion in arm's-length analysis; financing, improvements, and relocation considerations)
- Berea City School Dist. Bd. of Educ. v. Cuyahoga Cty. Bd. of Revision, 106 Ohio St.3d 269 (2005) (presumption that recent arm's-length sale price reflects true value; rebuttable)
- Walters v. Knox Cty. Bd. of Revision, 47 Ohio St.3d 23 (1989) (definition of arm's-length sale: voluntary, open market, parties acting in self-interest)
- Strongsville Bd. of Educ. v. Cuyahoga Cty. Bd. of Revision, 112 Ohio St.3d 309 (2007) (absence of one arm's-length element suffices to negate arm's-length status)
- Black v. Bd. of Revision of Cuyahoga County, 16 Ohio St.3d 11 (1985) (standard: trial court independence in reviewing valuation; abuse of discretion standard)